No, they want you to file the FAFSA to get merit aid because they want to make sure you really don’t qualify for a Pell grant or extra money. Schools want to give out their own money LAST.
This year my daughter’s school gave out 60 tuition scholarships to 60 lucky students. However, they made sure that ALL the other sources were applied first, like Florida bright futures, resident’s grant, any tuition scholarship the students got. It makes no difference to the student, but the school gets more outside money.